June 27, 1997
TO: BOARD OF GOVERNORS No. 41-97
PRIMARY CONTACTS - MONEY MARKET FUNDS No. 2-97
PRIMARY CONTACTS - MEMBER COMPLEX No. 43-97
RE: MONEY MARKET FUND PORTFOLIO INSURANCE MEETING
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As you know, ICI Mutual, the mutual fund industrys captive insurance
company, has been engaged in studies to determine whether to create a facility to offer
money market fund portfolio insurance. In February, the Institute and ICI Mutual
surveyed their members to gauge interest in such a product. Over 65% of the
responding complexes representing approximately 50% of the total money market fund
assets indicated that they were interested in money market fund default insurance.
After careful consideration, including review of the survey results and numerous
discussions with fund groups and portfolio managers, management of ICI Mutual
recommended and the Board of Directors of ICI Mutual approved the development of
money market fund default insurance and authorized ICI Mutual to enter into an
agreement with an appropriate partner to issue such insurance.
The insurance, which will provide coverage for defaults of money market fund
portfolio securities and similar events, will be available in approximately one month. A
meeting will be held on July 22, 1997 at 10:30 a.m. in the David Silver Conference Room
at the Investment Company Institute to discuss and answer questions regarding the
default insurance. If you or a representative would like to attend, please fax the
attached form to Arletta Mitchell at 202/326-5373 by July 15, 1997.
Matthew P. Fink, President David Silver, President
Investment Company Institute ICI Mutual Insurance Company
Name
Firm
Please fax this form to Arletta Mitchell at 202/326-5373
by July 15, 1997.
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U I will attend the Money Market Fund Portfolio
Insurance Meeting on July 22, 1997.
U I will not be in attendance.
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